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EUR/GBP: ING says BoE testimony may alter interest rate trajectory

EUR/GBP: ING says BoE testimony may alter interest rate trajectory

101 finance101 finance2026/02/24 10:09
By:101 finance

Focus on Bank of England Testimony and Sterling Outlook

According to Chris Turner from ING, Sterling traders are closely monitoring upcoming parliamentary testimony from four Bank of England officials, as their remarks could influence expectations for a potential interest rate reduction in March. With markets already factoring in an 80% probability of a 25 basis point cut, ING believes that comments from these policymakers may further support the case for monetary easing. As a result, ING maintains a view that EUR/GBP could move toward the 0.8800 level.

Key BoE Policymakers in the Spotlight

The main event for Sterling today is the testimony from four Bank of England rate-setters, which could provide important clues about the likelihood of a March rate cut. Alan Taylor is recognized for his dovish stance and has already voted in favor of lowering rates. In contrast, Huw Pill is known for his hawkish views and is expected to continue opposing policy easing this year.

Megan Greene has also maintained a hawkish position and is unlikely to change her outlook in the near term. However, the most pivotal figure is Governor Andrew Bailey, whose comments could be decisive in swaying the March vote toward a rate cut. Should Bailey indicate that current conditions warrant a reduction, market expectations for a 25 basis point cut—which are already at 80%—could solidify, and there may even be speculation about more than 50 basis points of BoE easing over the course of the year.

EUR/GBP Trading Range and Forecast

Currently, EUR/GBP is trading within a narrow range between 0.8720 and 0.8745. ING continues to anticipate a move toward 0.8800.

(This report was produced with the assistance of artificial intelligence and reviewed by an editor.)

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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